Property Management
A Texas commercial property manager receives a 'letter of intent' (LOI) from a prospective tenant. The LOI is typically:
AA binding contract that must be signed before showing the space
BA non-binding document outlining the key terms the parties intend to negotiate in the formal lease✓ Correct
CRequired by TREC for all commercial leases
DA guarantee from the tenant to lease the space
Explanation
A letter of intent (LOI) in commercial real estate is generally a non-binding document that summarizes the basic business terms (rent, term, TI allowance, options) that the parties intend to include in the final lease agreement. It guides lease negotiations but is typically not legally binding, though it may contain some binding provisions (confidentiality, exclusivity period).
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